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Contents
January-2018
News / Event
Article / Review 18 22 24 26 41
Auto Policy 2016-21 and Upcoming scenario of Pakistan Auto Industry Exclusive Report by Owais Khan
17 39
Ifs and buts over future of automatic, electric bikes in Pakistan Exclusive by Ali Hassan
Suzuki Pakistan Launches the 2017 Suzuki Cultus with Auto Gear Shift (AGS) Exclusive review by Sarim Raza Still at Zero point after 70 years Exclusive by M. Zahid Iqbal Malik
Is Volkswagen really going to consider coming to Pakistan? Exclusive reviewed by Ali Athar
Supporting Media Partner
Inside
Al-Futtaim set to confirm new Renault dealers in Pakistan EXIDE Pakistan Limited introduced Maintenance Free Batteries and Mobile Workshop facilities
News Updates 27 28 35 37 40 44
Investors fret as SEZ entry plans face delays Takeaways from the 7th JCC meeting on CPEC Auto assemblers leaping into action China’s Environmental Policies Get Stricter Corporate News - Glimpses Vehicles / Car Price List
45
International Automotive News
48
Motorcycles Price LIst
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January-2018 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 01
Monthly
AUTOMARK Magazine International Editor-in-Chief Muhammed Hanif Memon Technical Editor
Advisors
Muhammad Shahzad
Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad
Advertising Manager Tahir Siddiqui
Circulation Manager Hasaan Mustafa
Graphic Designer Mustafa Hanif Salman Hanif
Web Master Murtaza Hanif
Contributors in THIS EDITION Anwar Iqbal M. Owais Khan M. Hanif Memon Ali Hassan Syed Sarim Raza Ali Ather
Anwar Iqbal Chief Executive Officer Silver Seal International Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Engr. IHT Farooqui Chief Operating Officer Pak China Motors (Pvt) Ltd. Karachi Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815
AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon
Pakistan's future challenges should unfold now ! Where the world is reaching new heights of technology, Pakistan is still stuck in the past. Due to the increasing population and use of fossil fuels, it is soon to run out. The most commonly used fossil fuel 'oil' is expected to run out by 2050. The whole world is evolving towards electric powered vehicles. Vehicles which have electrical motors and completely run on batteries which are charged and no fossil fuels are needed to be burned for them to run. Day by day even more complex structures are being made with the latest technologies. Some are the following examples: Lamborghini made a concept car, in which the batteries are built within the body structure, this also reduces the problem of heavy batteries reducing the range of vehicles. Tesla launched many cars with one full battery charge range of over 400miles. There are many other normal companies evolving as well such as Honda and Toyota. However at the same time compared in Pakistan no companies seem interested in providing latest technologically advanced in auto sector. We are mostly getting the typical models from the big three (Suzuki, Honda and Toyota). The most advanced vehicles available in Pakistan can considerably be Toyota Prius which is also imported and not assembled within the country. Pakistan has not even locally assembled a hybrid car till now. Some companies have shown interest in coming to Pakistan however none of them are bringing new advanced cars in Pakistan. In 2020 there are some companies to come in Pakistan including Renault and Hyundai but none of them are interested in bringing electric cars to Pakistan. Pakistanis were still living in the second industrial era and not responding adequately to the future challenges unfolding with the wake of the fourth industrial revolution. Not adhering to the needs of the new age would only make us irrelevant and the biggest challenges governments, legislators and policy-makers faced were to build capacity to cope with the requirements of the fast approaching intelligence age. The industry however failed to upgrade with time and as a result a big chunk of auto spare parts manufacturing was moved to other countries using advanced technologies and improved techniques. Government to revamp the country’s education system and look at countries such as Finland, Netherlands and Germany, which were experimenting with no-classroom, no-curriculum education systems, whereas Pakistan was still stuck in the race of grabbing grades.
Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management
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Monthly AutoMark International
Automotive News - Update
Al-Futtaim set to confirm new Renault dealers in Pakistan UAE business group aims to launch construction of Karachi car plant in Q1-18 The Al-Futtaim group will “shortly” be confirming new Renault dealers in Pakistan, where new car sales this year are expected to close at around 200,000 units and 10 per cent higher than in 2016. Building the dealership network will move in tandem with the opening of a new plant in Karachi to assemble Renault models for the Pakistan market. “The expectation is that the construction of the plant will commence in the first quarter of 2018,” said Len Hunt, President of Al-Futtaim Automotive. “The finalisation of the transaction remains subject to a number of conditions, mainly relating to relevant regulatory approvals from Pakistani authorities.” If everything goes according to plan, sales of the assembled models could start from 2019. Details such as the investments and the future production capacity at the Karachi plant have not been revealed. This would be AlFuttaim’s second venture in Pakistan, where it also makes tractors and generators through its subsidiary AlGhazi Tractors. Hunt declined to name the Renault models that will emerge out of the Karachi plant. “Renault will be entering the market for the first time,” he said. “We have an exciting Renault product line-up for the Pakistani market. And the products we introduce will be built to the same specifications as in Europe.
Information on the model line-up will be confirmed in due course.” The Renault plant will be wholly-owned by Al-Futtaim Automotive, which has se cu re d “ lo n g - t e rm , ex cl us i v e agreements” with the French carmaker. The Pakistan move represents quite a big step-up for the UAE business. It own stakes in car manufacturing operations in Kenya and Egypt, but this will be the first time it is moving into a new territory with a fully-owned venture. The timing of the move into Pakistan seems quite favourable — between July and end October, just over 70,000 new cars were sold in that market, according to data from an industry grouping.
Current Position of Al-Futaim in Pakistan In October, the UAE-based Al-Futtaim Group announced to set up a plant to roll out 30,000 Renault vehicles per year. This was to be a first serious entry of European cars into Pakistan, with a total foreign investment of $120 million. Al-Fut taim selected Bin Qasim Industrial Park (BQIP) for setting up the plant and got approval from the National Indust rial Park (NIP) Allotment Committee for 50 acres land for the project.
Auto vendors, who asked not to be named, said, it has now been three months that the NIP Board of Directors, for unknown reasons, has not given formal approval of land allotment to AlFuttaim Motors. The sponsors, who had proceeded for the formation of AlFuttaim Motors in Pakistan based on NIP’s commitment, have held back transfer of $120m equity and may even roll back investment if the delays continue.
Consumer demand seems to be running at fairly stable levels, and the economy too has been humming along for the better part of the last two years. “We will confirm the details of the independent dealers and showrooms,” said Hunt. “Pakistani consumers can expect to see world-class Renault sales and after-sales facilities. Al-Futtaim has maintained a strong and mutually supportive partnership with Renault over many years.” Pakistan’s auto sector already has a fairly sizeable car production and assembling base, based around models such as Honda’s Civic and City as well as the Toyota Corolla and Suzuki Swift. In the July to end October period, domestic production of cars with 1.3-litre and plus engines accounted for just over 32,000 units. Those of 1-litre made up another 17,715 units, while those below 1-litre took the domestic production tally higher by 73,000 odd units. According to market sources, chances are that the Karachi plant will start off by assembling Renault’s small and midsize cars. It would be interesting to see whether the line-up will also include the maker’s smaller SUV models as well.
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Exclusive Reviewed by Awais Khan/Hanif Memon
Suzuki Mehran may live another life
Auto Policy 2016-21 and Upcoming scenario of Pakistan Auto Industry
It seems that after all Suzuki Mehran, d es p i t e t he a n no u n ce men t of discontinuation by Pak Suzuki Motor Company (PSMC) in 2019, may have another life at a new plant set up in Lahore by a leading Chinese twowheeler assembler. In June 2017, the Government, under the Automotive Development Plant (ADP) gave permission to United Motors, KIA-Lucky Motors and NishatHyundai to setup green field plants in Pakistan. These new entrants were given special incentives by way of reduced customs duties on import of CKD kit for local assembly of their vehicles.
United Motors Pvt Ltd United Motors Pvt Ltd, number one bike assembler of Chinese bikes, has entered into local assembly of vehicles that are look-alike of Suzuki Mehran and Ravi
but with minor design variations to avoid copyright litigation. The plant of United in Lahore is ready to produce Mehran and Ravi lookalikes in first half of 2018. It means that the company, instead of introducing its new models in CBU form, has taken a risk to start assembly of 800cc vehicles. It also means that the company has procured CKD parts from its Chinese Principal and also from local vendors. Commercial production will begin next year just three months before Suzuki Mehran is expected to be discontinued by PSMC. United Auto Industries is venturing into car and pickup manufacturing, United Motors General Manager Sales and Marketing Muhammad Afzal told leading English daily. United has already run advertisement
saying that United Motorcycle is now entering into car manufacturing industry for which dealers are required for the company’s new endeavors. The company has sought application for dealership network latest by December 2017. He said the company will use Chinese technology (Sichuan Baijie Longteng New Energy Automobile Manufacturing Company and YANGSTE Motor Group Co Limited (pick up) and market its vehicles under the brand name of United. “The local assembly of these vehicles will begin in the first half of 2018,” he added. The market is abuzz with reports that United is bringing out Chinese cars in collaboration with leading Chinese v ehicle assemble r – Chan gan. “Our car and pickup are not the copy of
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Monthly AutoMark International Suzuki brands. Our vehicles are totally different and loaded with various attractive features and safety standards,” Mr Afzal said. As for the pricing, he said the company intends to keep it “very affordable”. The official did not give any details about the company’s investment in the greenfield project, level of localisation, plant capacity and monthly production number. Pak Suzuki Motor Company is watching the situation from the sidelines. The company has not reacted yet over the plant set up by United Group where Mehran like car will come on the assembly line shortly. Since 1987, Suzuki Mehran has been the car of choice for customers that have wanted to upgrade from motorcycles to their first automobile. Mehran’s reliability as a first car, its affordable price, low cost parts and extensive after sales network has attracted the middle class which cannot afford to buy more expensive local or imported vehicles. This might be a story similar to arrival of Chinese motorcycles in 2005 onwards that were look-alikes with Honda’s best selling CD-70 but with a 40 per cent lower price. The customers flocked to embrace these Chinese 2-wheelers, which now dominated with 50-60 per cent market share. Interestingly, despite the low cost Chinese option, Honda still sells around 700,000 CD-70 motorcycles. When faced with the Chinese threat, it increased localization in CD-70 and reduced the price by Rs 10,000 to bring down the difference and compete with the Chinese products. That strategy has worked out well for Atlas Honda as it is still the largest seller of motorcycles in the country Pak Suzuki’s strategy might be different. It plans to discontinue Mehran and introduce the next generation Alto in March 2019. Sources say that Alto will come with better quality and features but with a price tag of Rs 850,000-Rs 900,000 for the basic variant. It is also being said that United is
planning to launch the Mehran look alike at a price of Rs 500,000-Rs 550,000 and will follow it up with lookalikes of Bolan and Ravi. Market reports say that the price of new Chinese 800cc vehicle would close to Suzuki Mehran price like Rs 600,000-700,000. Mehran, Ravi and Bolan, as an 800cc category, are the largest segment in the auto industry. Combined, these three vehicles sell approximately 8,000 vehicles per month. So far, Pak Suzuki has dominated this sector since another new entrant Al-Haj FAW’s pickups and vans are around Rs 100,000 more expensive than Pak Suzuki Ravi and Bolan respectively It is yet to be seen if United car, with a price level lower than Suzuki Mehran would be able to make a dent in Pak Suzuki’s market share, especially during the remaining period of Mehran’s ouster and when Japanese 800cc will be out of the market. The future seems to be full of excitement in the auto industry, with the consumers waiting for affordable options of vehicles especially in the small vehicle category. Some nine players belonging to bike and property business will try to cash their luck in car and LCV segment. To tap the booming auto sales and demand – some players are fighting legal battle claiming to hold the first right of ownership. In around nine strong competitors in Greenfield projects – seven Pakistani stakeholders have collaborated with Chinese auto sector while two have ve nt u red to in t rod uce Ko rean automobiles.
Khalid Mushtaq Motors Private Limited One is Khalid Mushtaq Motors Private Limited which recently received a green signal from the Ministry of Industries and Production (MoIP) to set up a vehicle assembly and manufacturing unit in Nooriabad industrial area under the Greenfield investment category. KMML Chief Executive Anwar Iqbal said the company has signed a technical collaboration agreement with the Chinese company KYC, a part of
The future seems to be full of excitement in the auto industry, with the consumers waiting for affordable options of vehicles especially in the small vehicle category www.automark.pk | January-2018 | Page 19
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Automotive News - Update Changhan Group, for assembling light commercial vehicles and mini passenger vans. “We will market the vehicles with the brand name of Mushtaq,” he said, adding that the total investment of the project is around Rs1 billion which wou ld creat e 200 dir ect jobs. The company has planned to assemble vehicles from second quarter next year. The plant has the capacity to roll out 100 vehicles per month. He said the auto industry is blossoming and the China-Pakistan Economic Corridor will also open new avenues for the growing automobiles industry. According to the industries ministry, the local partner will strictly adhere to the conditions laid down in the notifications. The company would enter into an agreement with the ministry to ensure compliance to the conditions and various timelines for completion of the project for availing incentives under the Auto Development Policy 2016. The Engineering Development Board (EDB) shall issue manufacturing certificate and list of importable components to new investors after it verifies that the assembly facilities established by the company are adequate to produce roadworthy vehicles.
Pak China Motors Private Limited Pak China Motors Private Limited has yet to get environmental clearance from Environmental Protection Agency due to which the company had closed down their business activities. An official said that the company has revived its plan to resume its activities.
Foton JW Auto Park Private Limited Foton JW Auto Park Private Limited (owner of Haier Appliances) has collaborated with Changsha Foton Vehicles Technology of China. However, a legal war is going on between the owner of Haier Appliances and Master Motors Private Limited while company already had groundbreaking of auto assembly plant adjusted to Haier Factory at Riwind road in Lahore. Master Motors has taken JW Auto to the court claiming ownership right of Foreland trucks. In response, owner of Haier has approached to its principals in China seeking original document or agreement reached between Master and
Chinese manufacturer. As the legal fight lingers on – import of Foreland trucks is going on and the trucks are available at dealership network.
Regal Automobile Industries Limited Regal Automobile Industries Limited, whose project has been approved by the government and according to sources company already had all the required documents and permission from government including investment agreement. They have set up an assembling unit at Multan Road Lahore to produce van and LCVs under DFSK Motor Company Limited of China. However, Pirani Group claims to have already secured a contract with DFSK which is (most probably) expiring in 2017. It is not known what the strategy of Pirani Group is whether it will approach DFSK again or let Regal Automobile to continue with Chinese company.
Habib Rafiq Private Limited Habib Rafiq Private Limited is planning to assemble cars, LCVs and SUVs in collaboration with Shandong Wendeng and Zotye International Automobile. The government has so far not approved the plan of the company but they have submitted all require documents to concern department for approvals. Islamabad based Cavalier Automotive Corporation is in talks with Armaed Vehicles of China. Two projects involving Korean auto giant are progressing fast. Prime Minister Shahid Khaqan Abbasi has performed ground breaking of Hyundai Nishat Group project in Faisalabad for the assembly of cars and LCVs. The local production of vehicles expected to begin within two years.
Hyundai Nishat Motor Private Limited The Plant is joint venture between Nishat Group 60% and Sojitz orporation 40% Japan total project costs around 230$ Million while a TLA and Distributor agreement with Hyundai Motors Korea. Millat may take 18% of Nishat share. The plant will initially produce 7000 vehicles in 2020 and is expected to reach up to production of 30,000 vehicles by 2030. Hyundai Nishat Motor Ltd signed an investment agreement with the Ministry
of Industries and Production under the Automotive Development Policy 201621 earlier this week to set up a Greenfield project to undertake assembly and sale of passenger and one-tone commercial vehicles. The company, as per sources, will not import vehicles in CBU form due to imposition of heavy regulatory duty. Hyundai's return to Pakistan will boost the government's efforts to shake up the Japanese-dominated car market and loosen the grip of Toyota, Honda and Suzuki, who assemble cars in Pakistan with local partners. Hyundai and South Korea's Kia Motor used to assemble cars in Pakistan until 2004 but withdrew after their local partner Dewan Farooque Motors Limited plunged into financial difficulties.
KIA Lucky Motors Pakistan Limited South Korean carmaker KIA Motor Co will start assembling cars in a joint venture with Karachi-listed Lucky Cement, part of the vast conglomerate Yunus Brothers Group. According to company sources, they already sing investment agreement, had all required environmental clearance from Environmental Protection Agency and done groundbreaking ceremony in November-2017 during a simple ceremony at Port Qasim area in Karachi. Now they in process of establishing assembly plant while other had working for importing cars in CBU units for local market.
Groupe Renault and AlFuttaim Local media ran a lot of reports saying European car assemblers also eye Pakistan to launch local assembly but so far French auto maker had dared to take the risk. After suspending talks with Ghandhara Nissan Limi ted (GNL) , French automaker Renault is making another attempt to assemble and distribute its vehicles in Pakistan in partnership with Al Futtaim, a Gulf-based business house. Groupe Renault and Al-Futtaim have signed definitive agreements to assemble vehicles in a new plant in Karachi. The transaction remains subject to a number of conditions mainly relating to regulatory approvals. The two parties expect that the plant will be built starting the first quarter of
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Monthly AutoMark International
Automotive News - Update
Import of used cars only discouraged, not stopped Commerce Secretary Younus Dagha has said that the government has neither stopped the import of used cars nor it intends to completely close down such a channel in the near future. “We just want to discourage unnecessary imports at this time to curtail the growing trade deficit,” he said while talking to media. Perturbed about the ballooning trade deficit, the government in the third week of October imposed regulatory duties on 356 essential and luxury goods. Auto industry demands exemption from regulatory duty on steel Since the government believes used car imports have a role in growing imports, it introduced some new conditions to reduce such imports. For years, car importers have been importing used vehicles through three major schemes – personal baggage, transfer of residence and gift scheme. According to the new rules, the owners or local recipients of all new and
used vehicles will pay duties and taxes supported by a bank encashment certificate, showing conversion of f orei gn remi tt ances in to lo cal currency.
2018. Car sales will begin in 2019 and be ramped up in 2020. It is surprising that the agreement was not signed in Karachi where the plant will be built. The companies did not reveal the amount of expected investment. They did not state the number of vehicles that the plant will roll out every year. Al Futtaim said it will “invest the amounts needed to make this project a great success, but as privately owned company, we do not reveal financial details.” Renault suspended talks with GNL as per a notice that the former sent to the Pakistan Stock Exchange (PSX). GNL informed stock investors that the company, in collaboration with a potential partner, was in talks with Alliance (Renault-plus-Nissan). However, owing to commercial reasons, GNL’s arrangements with the potential partner could not materialise. From then on, Nissan has been in discussion with GNL while Renault suspended talks, it said. “They, however, shared their view that Pakistan is an alliance project and they aim to select only one partner for Renault and Nissan models in Pakistan,” it added.
Sazgar Engineering Works Limited
What happened after new rules? Currently, importers say most of the clearances are being done under the transfer of residence scheme and not under the two other categories. Since the implementation of the new rules, industry officials say used car imports have taken a hit. However, those import deals that were finalised prior to the announcement of the new measures, are all exempted. Pakistan’s annual car sales have crossed over 300,000 units including imported used cars that constitute roughly 20% of total sales. The country imported about 65,000 used cars in fiscal year 2016-17 compared with about 56,000 units in the previous year. The domestic industry is anxiously
Sazgar Engineering Works Ltd informed investors through the Pakistan Stock Exchange that it has signed a vehicle assembly cooperation agreement with a Chinese auto-maker for manufacturing, assembling, sales and aftersales service of passenger and off-road vehicles. The company has not given any further details. The auto policy 2016-2021 is now bearing fruits due to rising interest of Chine se and Korean vehicle manufacturers. Barring France’s Renault , European makers are cautiously taking their steps and none of them have shown any serious interest to set up assembly plant in Pakistan. However, limited imports of European cars like BMW, Audi, Mercedes, and Porsche etc have already been going on for many years. At a time when big players in Europe, USA and China are focusing more introducing electric cars in years to come to reduce consumption of fossil fuels – the foreign players are bringing up their investment mainly in diesel and petrol engine vehicles to least developed
waiting for used car import numbers of November and December 2017 to assess the actual impact of new rules. Similarly, the government also waits for the numbers.’ $1b investment by new auto firms challenged in court “You will see the change in used car imports from January 2018,” said Dagha when asked about the impact of new rules. “I think the government will take back the new rules,” said All Pakistan Motor Dealers Association Chairman HM Shahzad. Analysts say Pakistan spends at least $300 million on used car imports annually. However, domestic automobile assemblers estimate the country spends close to $750 million a year on such imports. Last year, Pakistan’s import bill jumped to over $53 billion at a time when it was unable to increase exports, resulting in a ballooning trade deficit of $32.6 billion.
countries like Pakistan. There is a remote chance that the existing assemblers Japanese car giants like Toyota, Suzuki and Honda in Pakistan will ever make any effort to bring electric cars in the next five to 10 years. Many countries including India have shown their determination and fixed targets to end usage of petrol and diesel and bring electric vehicles. For Pakistan, China is the only real hope where electric cars are already in use in higher volumes. The price of electric vehicle in China must be quite cheap as compared to other competitors like Germany, Japan and Korea. The government needs to take some initiative and encourage imports of electric car from China by fixing a reasonable duties and taxes on its imports. This will at least give a new experience for the Pakistani people to drive electric vehicles. In case the import volume soars on high demand – it will open a chance for the local assembly of Chinese electric vehicle. For electric vehicle success – the government needs to create an infrastructure.
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Exclusive Review by Ali Hassan
Ifs and buts over future of automatic, electric bikes in Pakistan
Two types of customers exist in Pakistan. More than 80 per cent of people use cheap Chinese 70cc bikes while 20 per cent are using famous Honda CG-125, Suzuki 110-150cc and newly launched Suzuki GR-150 (a high priced bike). Many replicas in higher power engine have been marketed by some Chinese assemblers in 2017 such as Unique Crazer 150cc, Super Power Leo 200cc, Archi 150cc, Zxmco Cruiser 200cc, Hi Speed Infinity 150cc, Winner VBR 150cc and some other Chinese heavy bikes. One thing is clear that the market has Japanese branded bikes even imported from China. Branded players have their own plants and technology in China which they do not hand over or transfer to other players. Chinese copy of heavy bikes lack power, technology, performance, durability etc as compared to Japanese brands. Chinese bikes look good in their appearance but they cannot compete with the quality and durability of its Japanese competitors. Japanese heavy bikes are rolled out after extensive research and development while Chinese bikes lack any R&D. Pakistan Customs and FBR need to understand one basis issue that technology based branded bikes are costlier than Chinese replica bikes. Valuation for charging duties and
taxes by the Customs valuation department is same of branded Japanese and replica bikes of China which need to be changed. In last financial year, sales of locally assembled bikes stood at 2.5 million bikes in which majority of two wheelers are 70cc same design model. The issue regarding sales of 70cc in our market has been discussed for the last one decade and the policy makers are not ready to change the market dynamics which can replace 70cc bikes which do not exist in any part of the world. Mohammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle A s s em b l e r s (A PM A ) s ai d t he government must introduce new policies for the import and assembling of electric bikes in Pakistan. Due to heavy duties – electric bikes are not coming into Pakistan which is highly popular in China and European countries. Iran and India are reported to have started assembly of electric bikes. He said Honda is the most popular brand in Pakistan. Being the market leader, the local partner of Honda Japan is selling outdated and junk models in Pakistan which are not available in any part of the world. Other assemblers of Chinese bikes are
following Honda. Sabir said If Honda takes an initiative to introduce world class bikes especially electric in Pakistan then others will follow the suit more seriously. When asked about future sales scenario in 2018 (the year of election), he said Pakistan’s bike industry has already seen a boom for the last two years. “I think sales of bikes will remain brisk in 2018 due to soaring demand especially from rural areas where growers are encouraged by good crop like wheat, sugarcane, cotton, rice etc,” APMA chief said. One grey side of the boom is that people who cannot afford cheap bikes are lifting two-wheelers on monthly installment while taking a hit on their pockets and desires. “Consumers do not have purchasing power as even cheap 70cc bike is being sold on monthly installment which is quite shocking reflecting poor disposable income of people,” Sabir said. “The share of installment on total bike sales is more than 75 per cent all over Pakistan as compared to cash sales,” he confidently claimed adding that cash sales are basically coming from institutions which lift two wheelers for their staffers. The two-wheeler sector offers most preferred and economical means of
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Monthly AutoMark International Consumers saw some good news recently regarding launching of automatic bikes by Chinese bike assemblers. However, this initiative or this risk should have been taken by the Japanese bike assemblers who have strong foothold and market share particularly Atlas Honda for many decades transport and best alternative in the absence of any effective public transport and thus holds considerable opportunity of growth. Sabir said in case the public transport system and local train network remain ineffective in future -- the two wheelers sales will continue to enjoy robust growth. He said frequent traffic jams also force people to buy motorcycle as at least two wheelers help finding the way easily to reach the destination as compared to buses, mini buses or rickshaws on which people cannot move. Petrol price also holds a lot for common man. High petrol price does not allow consumers to go for four wheelers leaving the bike only choice for them. Consumers saw some good news recently regarding launching of automatic bikes by Chinese bike assemblers. However, this initiative or this risk should have been taken by the Japanese bike assemblers who have strong foothold and market share particularly Atlas Honda for many decades. It sounds weird that automatic bikes will rule the dilapidated roads of Pakistan in future since no serious steps have been taken by the government so far to support it. Few Chinese companies feel that time has come to provide consumers latest automatic technology bikes. However, the volume of automatic bikes has so far been insignificant or not hardly one per cent of total bikes’ sales. Consumers have not shown any enthusiasm over automatic bikes but certainly this is the future. Super Power bike maker took the risk by introducing automatic scooter but it failed to create any niche in the market. Then Union Star came out with same technology in 70cc bike which may prove a bit useful for females and older people due to its simple operation but young male riders are hard to find on the roads plying automatic Union Star bikes. APMA chief Mohammad Sabir Shaikh said automatic motor-bikes do not have gearbox, kick and clutch. The 70cc bike utilizes a direct-drive technology
for its operation. The automatic bikes are pricier than normal transmission bikes. It is not clear how these automatic bikes of 70cc fare well on climbing a bridge especially on the traffic jams on the bridge with a companion sitting behind the driver. He recalled that Honda 50cc did not have clutch but it was popular because of low petrol consumption. People mostly traders mainly used it for transporting goods but it did not become popular as a mode of personal transportation. Later some Chinese assemblers also introduced 50-70cc bikes (without clutch) but they flopped, he added. The mindset of people of Pakistan is somewhat different from the people of other countries, he said. Automatic cars are popular all over the world but in Pakistan the arrival of used automatic transmission imported cars of 660cc has created awareness. Now people love to drive automatic cars. As a result, Pak Suzuki Motor Company (PSMC) intends to bring 660cc locally assembled automatic model in 2019 replacing iconic 30 year old Mehran. The company also considering unveiling automatic WagonR next year while it had brought automatic Cultus recently. Sabir believed that people may take years to shift over to automatic bikes from manual transmission but much will depend how decades-old Japanese assemblers take the step. Automatic bikes are easy to operate but customers need to change their mindsets. Japanese assemblers can at least take a step forward by importing automatic bikes from Japan in order to introduce among Pakistanis for the feedback. Instead of importing costly heavy bikes the three Japanese assemblers must import automatic bikes, Sabir suggested. In case the import volume of automatic bikes soars – it will open new shops of specialized mechanics. However, part’s replacement of automatic bikes will definitely be costlier since they are not assembled in Pakistan but to check the consumers’ response some companies need to take the risk, he said.
M. Sabir Shaikh Chairman APMA
Mohammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle Assemblers (APMA) said the government must introduce new policies for the import and assembling of electric bikes in Pakistan. Due to heavy duties – electric bikes are not coming into Pakistan which is highly popular in China and European countries. Iran and India are reported to have started assembly of electric bikes. Japanese assemblers can at least take a step forward by importing automatic bikes from Japan in order to introduce among Pakistanis for the feedback. Instead of importing costly heavy bikes the three Japanese assemblers must import automatic bikes, Sabir suggested.
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Exclusive Review by Syed Sarim Raza
Suzuki Pakistan Launches the 2017 Suzuki Cultus with Auto Gear Shift (AGS) What is Auto Gear Shift? The introduced technology named as Auto Gear Shift is basically an Automated Manual Transmission system. Automated manual transmission system is a radical technology for Pakistan market as we dont see its application in any of the available car models however the technology has been in use around the world for a long time and has proven its reliablity even in premium car manufacturers including Ferrari. Suzuki has launched the introduced advanced safety features. Design of 2017 Suzuki automatic variant of the all-new Suzuki Pakistan didn’t just stop there Cultus with Auto Gear Cultus 2017, much to the and has now introduced the automatic delight of car enthusiasts across variant of the all-new Cultus, which is Shift
s
Pakistan. Suzuki Cultus 2017 is a known name in the automotive industry of Pakistan and has been a first choice hatchback for car buyers who prefer an affordable urban vehicle with fuelefficient powertrain and impressive performance features. The delight of Cultus fans doubled when Suzuki introduced the new generation Cultus at the start of 2017. The new Cultus not only improved on its performance capabilities but also
smarter and more efficient than the previous generation modelsand promises a stress-free driving experience for different types of road and driving conditions across Pakistan. Here is our detailed review of the 3rdgeneration Suzuki Cultus (Automatic Variant) with a closer look at its design, performance and safety attributes.
The design of Suzuki Cultus 2017 is completely different to its previous generation model. The designers and engineers at Suzuki have worked hard to give attention to every possible detail and make the design of this modern day hatchback as per industry standards to provide the best value for money to car buyers in Pakistan.
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Exterior The exterior of Suzuki Cultus 2017 exhibits true craftsmanship and boasts a compact hatchback style. The front fascia of the vehicle has an angularly shaped chrome grille flanked by smartly adjusted sleeker headlights that add to the stylish appeal of the vehicle. Underneath the headlights, there are round fog lights, which have been placed to give a clear view of the road to the driver in low visibility conditions. The smooth lines have been consistent in the exterior of Suzuki Cultus 2017 and they can be seen flowing seamlessly from the front fascia towards the rear of the vehicle. The rear of the vehicle has been designed in a true hatchback manner and is equipped with trapezium shaped upswept taillights that add a sporty appeal to the exterior of the vehicle. Overall, the exterior of the all-new Cultus is beautifully proportioned with smooth edges and curves flowing throughout the body. The 2017 Cultus is available in seven different options for exterior colors that are, Pearl Red, White, Cerulean Blue, Super Pearl Black, Silky Silver and Sand Beige,Graphite Grey.
Interior The interior of the 2017 Cultus is practical and spacious and has been designed to provide an unforgettable driving experience withbest convenience features available for driver and passengers. The interior is adorned with a high-quality black colored fabric that covers the whole interior and makes it look exquisite and eye-catching. The interior of the vehicle also offers impressive technological features such as power windows, CD player, USB port, power mirrors and AUX. The cabin of the Cultus can easily accommodate five passengers making it an ideal vehicle for small families. It offers a luggage carrying capacity of 254 litres.
efficient engine that delivers a mileage of 18-19 KM/L in the city and 20-22 KM/L on the highway.
journey completely hassle-free and comfortable.
What is Auto Gear Shift?
Safety Features in the All-new Cultus with Auto Gear Shift
The introduced technology named as Auto Gear Shift is basically an Automated Manual Transmission system. Automated manual transmission system is a radical technology for Pakistan market as we dont see its application in any of the available car models however the technology has been in use around the world for a long time and has proven its reliablity even in premium car manufacturers including Ferrari. The AMT systems are a patent of Magnetti Merelli, an italian company. Manual transmissions require manual input from driver for clutch and gear shift operations, AGS eliminates both these functions by automation. This ensures that the user avails the benifits of Automatic drive while not compromising his fuel economy. The AGS also provides the user with a manual mode which lets the user drive at his own will when he/she wants to. The newly introduced auto gear shift in t he n ew C ult us i s a mas si v e breakthrough achieved because it has taken the driving experience of the vehicle to an entirely new level. Be it a quick drive to your office, an adventurefilled journey with family and friends or a simple urban commute, the auto gear shift in the new Cultus makes your
The all-new Cultus with auto gear shift doesn’t only elevate the driving experience for the driver and passengers, but also makes every ride completely safe with its advanced safety features. It offers dual airbags for maximum safety of the driver and front passenger in event of a dangerous road accident. It is a standout feature as not many affordable cars available in the Pakistan market feature the dual airbags for enhanced safety.
Engine Cylinder Configuration: In Line Displacement: 998 cc Engine Power: 67 hp @ 6000 RPM Fuel System: Multipoint Injection Fuel Type: Petrol No of Cylinders: 3 Torque: 90 Nm @ 3500 RPM Valve Mechanism: DOHC 12 valves
Price of Cultus 2017 with Automatic Gear Shift The 2017 Cultus with auto gear shift is now available in the car markets across Pakistan at a price of PKR 1,528,000.
Performance Features The auto gear shift mechanism is the highlight of the newly launched automatic variant of the Suzuki Cultus 2017. Apart from the change in transmission, other features and specifications of the engine remain the same as the manual transmission variant. It boasts a powerful 1.0-litre SOHC 12 Valve engine that produces 50bhp at 6000RPM and 90 Nm of torque at 3500RPM. It is a K-Series fuel-
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Exclusive by Muhammad Zahid Iqbal Malik
Monthly AutoMark International
Still at Zero point after 70 years
In
2017 a lot of new motorcycles were launched in Pakistan. Few will be assembled here and most of these will be imported from China. But I don’t think that any of the bike will be made here (with 100% Pakistani parts). Same is the case of cars that there have been many announcements during 2017. For example, Nishat group, Lucky group, United Motorcycles etc will bring brands like Hyundai, Kia, Renault etc. We see many professionals calling all above as a very good sign of progress. Yes, we agree that it will give jobs and support the economy. But in past many brands came to Pakistan and then returned too. The worse thing is that we did not learn anything from any company who worked here. We don’t know why professionals are happy? Just for the good jobs with attractive salaries? They are thinking about themselves only? They don’t think about long term progress of Pakistan? Let us share a few things about India that is not far away but just along our
border line. Their company Hero worked with Honda Japan and now is a separate entity and bigger than Honda. Their company Bajaj worked in collaboration with Kawasaki and then Kawasaki left India, as a result Bajaj is a separate entity with good product line, strong R & D etc. If we talk about cars, their brand Maruti worked with Suzuki and is now a huge name with respect to size, products and R & D. Their own brand Tata has shown a lot of progress not only in India but in world too. Infact the Indian giants have taken over famous brand of Europe, America. Now if we compare them with Pakistan, then can we claim that we have also made progress? We believe it is not the progress. Whether Renault comes or Hyundai goes back, whether Atals Honda launches CB 150R or Road Prince imports Zongshen WEGO 150, in all the cases we as Pakistani cannot claim we have done progress. This progress is not more than some jobs, some new investments etc. Let us explain this. Kawasaki worked here for many years
and when they left, we could not even make a logo of Kawasaki. Hyundai and Kia worked here for many years, but when they left we could not even make a handle of same quality with our brand name. After all these brands of bikes and cars coming here and going back, Pakistan is nowhere with respect to R & D and technological advancements. We name this status as Zero point even after spending seventy years. We request all professionals and authorities to kindly consider long term progress. Today, even a single company of Pakistan cannot claim that they have made their own motorcycle or car because we are in habit of cut, copy and paste now. Let us, atleast promise to ourselves (individually) that we will strive for something good for Pakistan. Today when we are at a position of self-reliance in nuclear technology, ship making and even fighter jets then why not motorcycles and cars? By Muhammad Zahid Iqbal Malik, Founder & Head of Safe Riding – Road Safety Dept of Pakistan Bikers Club
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Automotive News - Update
Investors fret as SEZ entry plans face delays Auto vendors, who asked not to be named, said, it has now been three months that the NIP Board of Directors, for unknown reasons, has not given formal approval of land allotment to Al-Futtaim Motors. The sponsors, who had proceeded for the formation of Al-Futtaim Motors in Pakistan based on NIP’s commitment, have held back transfer of $120m equity and may even roll back investment if the delays continue. Around 10 projects in the fields of automobile, auto parts, pharma and steel carrying an investment of Rs25 billion have been waiting for months to get tax exemptions and other incentives allowed in the Special Economic Zones (SEZs). The government had announced the establishment of SEZs across Pakistan to invite foreign and local investors to set up industrial plants against one-time waiver of custom duties on plant and machinery as well as a 10-year income tax holiday – provided the units came into commercial production before June 2020. In October, the UAE-based Al-Futtaim Group announced to set up a plant to roll out 30,000 Renault vehicles per year. This was to be a first serious entry of European cars into Pakistan, with a total foreign investment of $120 million. Al-F uttaim selected Bi n Qasim Industrial Park (BQIP) for setting up the plant and got approval from the National Industrial Park (NIP) Allotment Committee for 50 acres land for the project. Auto vendors, who asked not to be named, said, it has now been three months that the NIP Board of Directors, for unknown reasons, has not given formal approval of land allotment to AlFuttaim Motors. The sponsors, who had proceeded for the formation of AlFuttaim Motors in Pakistan based on NIP’s commitment, have held back transfer of $120m equity and may even roll back investment if the delays continue. Another major issue that is deterring investment in the provincial SEZs is the delay in approval of SEZ Enterprises by the Sindh government, they said. To avail incentives under the SEZ Amendment Act 2016, the first step is the classification of a project as an SEZ
Enterprise by the respective provincial government. So far, it seems the Sindh government has lost all interest in industrialisation as it has not held a meeting of the SEZ Board for the last six months, vendors said. Resultantly, around 10 projects are stuck, with the sponsors being forced to pay custom duties and incur heavy demurrages at port, they added. Lucky Group had announced to set up a plant to produce world renowned KIA compact vehicles at BQIP. They were allotted 130 acres land by NIP. However, they are unable to claim incentives allowed under the SEZ Amendment Act 2016 since their case for classification as SEZ Enterprise is lying in CM Sindh’s office for the last several months. Other companies whose cases are held up at Sindh government include Barkat Frisian, Tecno Auto Glass, Universal Packaging, Young’s Food, Sci Life Pharma¬ceuticals, Mehran Commercial Enterprises and Pinnacle Pharma. It must be noted that BQIP and KCIP have been setup over 1,200 acres of land in the Pakistan Steel Downstream area and in Korangi Industrial Area respectively. They are expected to become the bi ggest cluster of automobile, steel and pharmaceutical manufacturers in the country. The companies that are in the process of setting up plants in BQIP include KIA-Lucky Motor Co., Al-Futtaim Renault Motors, General Tyre, Hi-Tech Auto Parts, Tecno Auto Glass, Ahmed Glass, Horizon Steel, International Steel, Tayyab Steel etc. Total investment in these two SEZs is expected to touch Rs50bn in next two years. Interestingly, vendors said Sindh is the only province that is meting out such treatment to long-term investment. On the contrary, Punjab government takes no more than two weeks to receive SEZ
Enterprise status for projects being established in Quaid-e-Azam Apparel Park (QAAP), M3 Industrial City and Value Addition City, they added. M ea n wh i l e , t a l k i n g t o D a w n , Chairperson of Sindh Board of Investment (SBI) and Vice Chairperson of SEZ Authority Sindh, Naheed Memon said that there was no serious issue in giving the status of SEZ Enterprise to investment projects. The reason for delay, she said, is that the SEZ status to industries approval agenda has been put in a meeting which will be chaired by Chief Minister Sindh, Mr Murad Ali Shah, who is also chairman of SEZ Authority Sindh. “Since there are other agenda items related to developing and building the capacity of this authority, this meeting needs to be held,” she said. Due to some pressing issues, this meeting has been delayed thus resulting in delay in SEZ status approval,” she added. “I am trying my best to give approval of SEZ status to the investors as soon as possible,” the SBI chief added. Auto vendors said Pakistan is passing through a critical period of twin deficits. On one hand, there is a huge fiscal deficit due to gap in government expenditure versus tax collection while, on the other hand, the country is going through a serious current account deficit due to gap in imports and exports. The only way to come out of the current account deficit is to attract Foreign Direct Investment (FDI), especially in long-term industrial ventures. Not only would such FDI bring valuable foreign exchange to Pakistan but this would also result in employment generation for over three million Pakistanis entering the workforce every year, they added. Courtesy: Daily Dawn News
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Pak - China Collaboration Update - CPEC
Monthly AutoMark International
Takeaways from the 7th JCC meeting on CPEC The most recent 7th JCC meeting on CPEC was held on November 20 2017 in Islamabad. The key points of this meeting included the signing of much debated CPEC Long Term Plan (LTP) 2014-2030 which includes collaboration in areas of industrial cooperation, agriculture, tourism and financial cooperation Khyber-Pakhtunkhwa has voiced its preference for Rashakai industrial estate over Hattar at a JCC meeting and China has agreed that provinces retain the right of site selection for industrial estates China and Pakistan have been advancing CPEC projects through the Joint Coo perati on Commit tee ( JCC ). According to the information on the official website of CPEC, there are five working groups which include long-term planning, energy, transportation infrastructure, industrial cooperation and Gwadar Port. JCC deals with the overall planning and coordination while the other mentioned working groups are responsible for detailed planning and implementation of projects under CPEC. Since August 2013, seven JCC meetings have been held to review progress on CPEC. The first ever meeting of JCC on CPEC was held in Islamabad on August 28, 2013 which symbolised the joint efforts of both countries to promote the implementation of the relevant work on the key areas of infrastructure, energy and investment. The summary for the long-term planning of CPEC project was prepared on the basis of mutual understanding of both countries. The second JCC meeting was held in February 2014 in which feasibility studies on 16 energy projects were approved. The third JCC meeting was held on August 27 2014 in which the prioritised or early harvest projects under CPEC were finalised. The fourth JCC meeting was held in Beijing on March 25 2015 where many selected energy projects including coal based, hydel, solar and wind energy projects were reviewed. This meeting also reviewed the reports presented by the joint working groups on five key areas. The fifth meeting was held in Pakistan
on 10-12 November 2015. In this meeting it was concluded that the construction of Diamer-Bhasha Dam should be included along with the accorded approval of the coal-based power plants to be built at the Thar Desert in Sindh province to enhance the capacity from 660-2600 MW. The 6th JCC meeting was held in Beijing on December 29 2016 in which several new projects were signed. Each province was set to get an industrial zone. It was concluded on a pleasing note to speed up the development of the existing projects. Important decisions taken during this meeting including that a 1320 MW power plant will be completed in Sahiwal in 2017. The most recent 7th JCC meeting on CPEC was held on November 20 2017 in Islamabad. The key points of this meeting included the signing of much debated CPEC Long Term Plan (LTP) 2014-2030 which includes collaboration in areas of industrial cooperation, agriculture, tourism and financial cooperation. It has attempted to formalise the future roadmap for industrial and economic collaboration involving special economic zones along the CPEC stretch in Pakistan and adopt a Long Term Plan (LTP) 2030. It has been inferred that the main focus of the seventh JCC meeting remained on the special economic/industrial zones while the five joint working groups (JWGs) met earlier on the Nov 20, 2017 to remove any irritant and suggested the five ways on the projects pertaining to — Gwadar, energy, transport infrastructure, special economic zones. Pakistan’s primary objective is to enhance its industrial capacity from assembling imported parts to local production of goods and encouraging China’s enterprises to invest in Pakistani
market to improve the energy efficient appliance industry. The most recent 7th JCC meeting on CPEC was held on November 20 2017 in Islamabad. The key points of this meeting included the signing of much debated CPEC Long Term Plan (LTP) 2014-2030 which includes collaboration in areas of industrial cooperation, agriculture, tourism and financial cooperation Moreover, Khyber-Pakhtunkhwa in this meeting raised its preference for Rashakai industrial estate over Hattar in unequivocal terms and China has agreed to the provincial right of site selection for industrial estates. Furthermore, since China’ s proposed financial structure regarding DiamerBhasha Dam was not approved by Pakistan, it still provides the two sides with an opportunity to generate a debate for the future development of this project. There was also an ample discussion on t h e r a i lw a y p r oj e c t s, G w ad a r International Airport, energy projects and industrial estates, already included in CPEC with the focus on the implementation of the existing projects and the finalisation of the feasibility reports of these projects. Under the road map, the Chinese side would start investing in the nine Special Economic Zones directly after JCC’s clearance to avail benefits of tax exemption. The cabinet committee on the CPEC presided over by Prime Minister Shahid Khaqan Abbasi has already cleared the proposals for the fresh projects and nine SEZs. This will offer 15 to 20year tax exemption to China in case investment is made before 2020. In a nutshell, the chronological order of the seven JCC meetings shows that the following are projects which Pakistan has been pursuing in the last seven
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Automotive News - Update
Alto 660cc, Toyota Vios and Honda Brio to be launched in 2018/19 The Auto Policy 2016-21 and the upcoming competition has forced the Big 3 of our market to do something out of the ordinary. Suzuki, Toyota and Honda which long dominated the automobile market with a handful of options that never rivaled each other are now forced to prepare for some severe compet ition against the upcoming European, South Korean and Chinese players. According to the information published in Dawn, the Big3 have already geared up to introduce new vehicles in 2018 and 2019. Indus Motors will discontinue the 1300cc Corolla variants and will instead launch the Vios sedan as a replacement likely towards Q3 2018. Pak Suzuki has also finally decided to bid a farewell to the 30 year old Mehran. The company will introduce the 660cc Alto in early 2019. Whereas Honda Atlas
is also considering to assemble the 1200cc Brio hat chback locally. According to the report, local vendors have already started the development of parts for Suzuki Alto (660cc) and Toyota Vios. In addition, the companies have also finalized the cost of auto parts that will be made locally. FAW is also reportedly working on to introduce an SUV and a sedan to their lineup by 2019, as certain models are in consideration but not finalized yet. Pakistan’s automobile market will see an addition of several new players in coming years as Renault partnered with Al-Futtaim, Hyundai by Nishat Group, Kia by Lukcy Cement (Yunus Brothers Group) while United Autos and Sazgar Engineering having teamed up with Chinese automobile manufacturers (yet unnamed), will be stepping into the market with their range of vehicles.
Chinese automakers evince interest in investing in Pakistan A delegation of Chinese manufacturers and assemblers of automobiles including heavy duty trucks, engines, auto parts and tyres visited lslarnabad Chamber of Commerce and Industry and showed interest to set up auto manufacturing plants in Pakistan. The delegation was representing about 500 auto companies of China including Jinan Zhongzhan International Trade Co Ltd., Jinn Bonalte Trading Co Ltd., Hebei Xinjiu Heavy Duty Machiaery Makes Co Ltd., Sinotruk, Shanghai CheezmaiL E-Commerce Co Ltd., and others. The delegation members said that they
are representing 500 automobile companies of china producing EU standard vehicles and were interested to explore business opportunities for vehicles, engines and auto parts in Pakistan as it was a potential market for automobile sector. They said initially they were interested in finding local partners for supply` of automobiles and auto pads in Pakistan and on successful operation of business they would try to set up auto manufacturing plants and bonded warehouses through joint ventures and investment in Pakistan.
meetings of the JCC which include Diamer-Bhasha dam, the Main Line 1 (ML1is considered as the logistic backbone of this corridor) upgradation of the Peshawar to Karachi railway line, the Karachi Circular Railway, and three road projects (which include KKH (remaining portion), D.I.Khan to Zhob and Khuzdar to Basima. Completing feasibility and other formalities of GilgitSh and ur- C hi t ral - C hakd ar a and Naukundi-Mashkhel-Panjgaur roads coincided with the 7th JCC. The approval of the project ML1 is awaiting the cost estimates which would be generated within the coming three months. Federal Minister Ahsan Iqbal said that
the Long-Term Plan would be public on 18th of December 2017 which would further add to the prospects for more inclusive research of this mega project. Simultaneously there are bright prospects to jack up the developments in various sectors which include agriculture, information technology. This demonstrates the success of this meeting and the willingness of China to diversify its cooperation under the CPEC project. In this backdrop, the harmony between the provincial and federal governments is required and they should work actively for the inclusion of more projects under CPEC and to complete ongoing projects. It is hoped that the end result would be
Pakistan considering plan to use yuan in trade with China Pakistan is considering a proposal to replace the U.S. dollar with the Chinese yuan for bilateral trade between Pakistan and China, the English-language daily newspaper Dawn reported on Tuesday. Bilateral trade between the countries totaled $13.8 billion in 2015 to 2016. Interior Minister Ahsan Iqbal, who has been central to the planning and implementation of China-Pakistan economic ties, was reported discussing the proposal after unveiling a long-term economic development cooperation plan for the two countries. Iqbal said Pakistan would continue to use the rupee domestically. The long-term plan highlighted key coop eration areas between the neighboring states including road and rail connections, information network infrastructure, energy, trade and industrial parks, agriculture, poverty alleviation and tourism. The plan marks the first time the two countries have said how long they plan to work together on the project, known as the China Pakistan Economic Corridor (CPEC,)taking the economic partnership to at least 2030. China has already committed to investing $57 billion in Pakistan to finance CPEC as part of Beijing’s “Belt and Road” initiative to build a new Silk Road of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa. productive, and the projects will be able to proceed. The continuity of the meeti ngs of Joint Coop erati on Committee since 2013 to November 2017 shows the evaluation and the progress of work on ongoing projects under CPEC. The 7th JCC has further deepened cooperation between the two countries under the framework of CPEC and would pave the way for Pakistan to enter a new phase of Industrial Cooperation. The writer is a Research Associate at Strategic Vision Institute Islamabad she can be reached at asiamaqsood.09@gmail.com
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Intercity Buses News - Update
Monthly AutoMark International
Customs values of Rear Engine Intercity Buses revised The Rear Engine Intercity CBU Bus with standard seats/accessories having length between 11.80 meters to 13 meters will be assessed at $82000 while the Rear Engine Intercity CBU Bus with standard seats/accessories having length between 10.81 meters but not exceeding 11.79 meters will be cleared at the value of $80000 Directorate General Customs Valuation (DGCV) has revised the customs values of Rear Engine Intercity Buses under sub-section (9) of section 25 of the Customs Act, 1969. According to details, the DGCV has been requested by Master Motor Corporation Pvt Ltd for determination of customs values for the Rear Engine Intercity Buses imported from China, due to under invoicing. Therefore, the Directorate has initiated an exercise for determination of customs values of the subject vehicles under section 25 A of the Customs Act, 1969. For the purpose, the meetings were held on September 14 and November 9, 2017 with the stakeholders including the representatives of
- Master Motors Corporation (Pvt) Ltd Karachi. - Hino Pak Motors (Pvt) Ltd Karachi. - Al-Haj Hyundai (Pvt) Ltd Karachi. - Gandhara Motors (Pvt) Ltd Karachi and - Universal Auto Engineering (Pvt) Ltd Karachi. During the meetings, local manufacturer Master Motors Corporation (Pvt) Ltd contended that no customs value of intercity rear engine buses was determined and the rear engine intercity buses having length ranging from 11.70 to 13 meters were of high value and imported at under invoiced values. Furthermore, the prices vary on the basis of available features with these buses like LCD fitted seats, ZF
transmission, luxury seats, availability of bathroom. On the other hand, the importers argued that the assessed values of intercity rear engine buses are fair and the prices provided by the local manufacturers are of ultra-luxury buses with additional features. Therefore, these prices cannot be made basis for determining the customs values of the subject buses. However, the importers did not submit any corroborating documents in favour of their contentions. The stakeholders have agreed on rates of value which could be increased for different features in case of additional features like luxury seats, ZF transmission, LCD fitted seats etc. Later, the valuation methods given in section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue at hand. Transaction value method provided in section 25(1) of the Act ibid was found inapplicable because the required information under the law was not available. The identical and similar goods valuation methods provided in subsections (5) and (6) of section 25 of the Customs Act, 1969, were examined for applicability to the issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared values of the subject goods. As the market of the subject goods is asymmetrical as only few specific sellers and buyers are engaged in the transaction of the goods. However, the market enquiries as envisaged under section 25(7) of the Customs Act, 1969 were conducted as well. The computed method as provided in section 25(8) could not be applied for
valuation of the aforementioned goods as the cost of raw material and fabrication charges under clause (a) and amount of profit and general expenses under clause (b) of section 25(8) of the Customs Act, 1969, in the country of exportation could not be ascertained. Input and feedback by the importers and manufacturers in the meetings was also considered. The online prices were also obtained. All gathered information w a s e v a l u at e d an d an a l y z e d . Consequently, the customs values of rear engine intercity CBU buses are determined under sub-section (9) of section 25 of the Customs Act, 1969.
The customs values for Rear Engine Intercity CBU Buses of Chinese origin shall be assessed to duty/taxes at the following customs values: The Rear Engine Intercity CBU Bus with standard seats/accessories having length between 11.80 meters to 13 meters will be assessed at $82000 while the Rear Engine Intercity CBU Bus with standard seats/accessories having length between 10.81 meters but not exceeding 11.79 meters will be cleared at the value of $80000. The valuation ruling said that if imported with luxury seats without LCD on each seat of bus, value to be enhanced by 0.6 percent of assessed value and if imported with installed LCD on each seat, value to be enhanced by another 0.6 percent of the assessed value. And if the same was imported with bathroom further 0.3 percent may be added in the assessed value.
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Monthly AutoMark International
Automotive News - Update
Auto assemblers leaping into action It seems local auto assemblers will not take competition from any new player that joins the field lying down. As Lucky and Nishat finalize their plans on their respective assembly plants, car sales for existing assemblers are thriving. According to numbers reported by Pakistan Automotive Manufacturers Association (PAMA), car sales increased by 29 percent in 5MFY18 year on year. Overall auto sales together with commercial vehicles and tractors grew by 33 percent during this period. Greater car sales have been bolstered by affordable auto financing. Between Octobers of 2017 and 2016, financing for cars rose by 29 percent according to the Central Bank’s database. Meanwhile, imports for vehicles in CBU and SKD/CKD form (Completely Built Units, Semi/Completely Knocked Down) have also grown significantly despite regu l at o ry measures i nclu d in g regulatory duties taken by the government to curb the former. CKD/SKD import grew by 29 percent for cars in the July to Oct period of this fiscal year according to data by Pakistan Bureau of Statistics (PBS). CBU imports increased by 83 percent for cars. The government believes we will start seeing the impact of the import discouraging measures from January, so we will be closely monitoring the numbers.
Pakistan Suzuki Motor Company (PSX: PSMC) has performed remarkably well over the past five months with the introduction of its new Cultus while WagonR sales are now 20 percent of all Suzuki sales against 14 percent this period last year. Both variants face strong competition from import varieties in the under 1000cc engine league that have been growing ceaselessly over the past year. Suzuki has also been testing with CBU imports of Ciaz and Vitara in the sedan and SUV markets. Both are popular vehicles in India but we don’t have access to sales number here to gauge market response. But safe to say, Suzuki is contemplating getting into other n i c h e m ar k e t s w h i c h r e ma i n underutilized.
Honda Atlas Cars (PSX: HCAR) has been outperforming the other two since it launched not only a new civic but a crossover SUV that gives the feel of a powerful car but doesn’t cost as much as other SUVs. Customer reviews suggest that it is a good family car and safe for travel in mountainous lands. Starting production toward the last quarter of FY17, Honda has now sold over 4,000 units of Br-V during the five month period of this fiscal year, and seems to be a better fit for Pakistani car buyers. The larger SUV Fortuner sales
stood at 1,400 units comparatively, also costing nearly double of Br-V. On the other side of the sedan market is Indus Motor Company (PSX: INDU) which is investing in capacity expansion to meet growing demand. Corolla sales have been down since the company has faced production constraints. Customers are also awaiting a face lift. The rising appetite for SUV is evident with not only Br-V sales but Fortuner, which has soared as we kicked off FY18. Meanwhi le, the new Hilux-Revo sales jumped up by 34 percent. Despite seeing a reduction in its market share down to 24 percent (5MFY18: 29%), its high margin Hilux and Fortuner, together with capacity enhancement will ensure it still has a big chunk of the market going forward. The new car ventures—of which Renault’s plans are still unclear—will be setting up new assembly plants and though we hear that CBU imports will be starting soon, it will take 2-3 years for any of these players to find their footing (Read “Car economy: the myths of competition”, Dec 7) and give real competition to existing assemblers. If they do, we are all for that, but recent activity of the three players shows they will not let go without a fight.
Revenue body to withdraw regulatory duty on raw material The Federal Board of Revenue (FBR) will withdraw regulatory duty on various raw materials, which are used by local manufacturers and export sector. During a meeting with members of the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday, FBR Chairman Tariq Mahmood Pasha said that the revenue body is reviewing the list for providing exemption to those raw materials used by manufacturers and the export sector. The list will be released soon, he added. He admitted analytical errors in SRO 1035 (I)/2017 issued on October 16, 2017 for imposition of regulatory duty on 731 items. Around 411 items were already subject
to regulatory duty and the list contained some more items to bring under the ambit of the regulatory duty, he said. Pasha said that the prime objective to impose regulatory duty was to improve the country’s balance of payment by discouraging rising import of items, including non-essential and luxury, besides those raw materials, which are manufactured locally. He assured the business community that the imposition of regulatory duty is not meant for revenue generation. Such measures resulted in export growth during the last few months, the FBR chairman said. “We are in the process to bring correction in SR related to regulatory duty,” he added.
The business community apprised the chairman of the overnight implementation of the regulatory duty, which resulted in difficulties for importers who booked shipments in advance. The businessmen also apprised the FBR chairman that the imposition of regulatory duty would badly impact the retail side and it would have inflationary pressure in the near future. They urged the Federal Board of Revenue chairman to find other avenues to discourage imports such as amending the existing free trade agreements and preferential trade agreements.
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Automotive News - Update
China’s Environmental Policies Get Stricter Factories Might Stay Closed After speaking to other industry experts on the ground in China, here are some important takeaways that we would like to share with you especially if you have a business that is sourcing products from China THE GOOD NEWS IS THAT CHINA IS CLEANING UP ITS MANUFACTURING
UNLIKE BEFORE THE NEW LAWS ARE HERE TO STAY
This is positive for both China and the rest of the world. Beijing is known for its legendary levels of pollution. In China, lung cancer rates are climbing astonishingly fast. Also, the impact of the pollution can be felt as far away as Japan and even North America! So all in all these stricter environmental regulations are a positive development. The air seems to be cleaner these days in Shanghai, Shandong, Guangzhou, and Shenzhen. Some have told me that they “can’t remember the last time the skies were so blue!”
In the past, these cleanup efforts were temporary due to large socioeconomic and/or political events such as the 2008 Beijing Olympics, 2010 Shanghai World Expo, and 2012 Hangzhou G-20 Economic Summit. The difference now is that the government leaders have issued direct orders from the top down. We understand that the environmental cleanup is as important as the anti-graft campaigns in China. This is serious stuff folks.
PREVIOUSLY IT WAS CHEAPER FOR FACTORIES TO POLLUTE THAN TO CLEAN UP In the past the main problem was compliance. Because fines were small and loosely enforced, from a business perspective it was cheaper for a factory to continue operating and paying a small fine than to rehaul their operations and invest in new equipment and processes to clean up.
BUT THIS TIME THE NEW EPA LAWS HAVE TEETH Local leaders are pressured to force local factories to comply or face stiff fines and penalties. These may include daily fines, cancellation of business licenses, and even criminal enforcement.
WHA T DOES TH IS MEAN IF YOU’RE SOURCING FROM CHINA?
FACTORIES THAT HAVE BEEN CLOSED MAY STAY CLOSED I have heard reports of dying mills that have been shut down by the dozen because they cannot comply with the new EPA laws. In other cases, factories have been shut down indefinitely. On the other hand, other factories have gone through their audit and passed inspections with a minimal disruption to their operations. The takeaway is that it depends on your industry, your product, as well as your factory’s operations and level of pollution.
EVEN IF YOUR FACTORY WASN’T AFFECTED, THEIR SUBCONTRACTORS MAY BE SHUT DOWN One important note is that if your factory wasn’t affected you’re not out of the woods yet. This is because their subcontractors may be affected by the crackdown. This means that if your product is dyed or treated with chemicals – this part of the production
process may become a bottleneck that may delay your delivery. Or some factories may even switch out or even eliminate certain processes altogether. I’m not necessarily saying that factories are dishonest. But desperate times call for desperate measures and for some factories it’s a fight for survival. It’s not unheard of for factories to forego a certain chemical treatment when that t reat men t may j eo p ard i ze t he shipment’s delivery date. Perhaps more importantly, it boils down to Chinese culture where social harmony is more important than speaking up and causing problems. Often times these problems will be kept to themselves and only brought up when the sh*t hits the fan.
CHINA IS MOVING UP THE VALUE LADDER On a macro level, China is moving away from the low end and super cheap products that take a significant toll on its environment. This makes sense as pollution levels have skyrocketed in the past 20 years since China’s economy has boomed. To put it bluntly, China is willing to let the “dirty” business go to other countries such as India, Bangladesh, and Southeast Asia. At the same time, China is focusing on more valuable products whose manufacturing processes depend more on skilled labor and automation. Case in point the Apple iPhone.
WHAT CAN YOU DO? THE THREE C’S COMMUNICATE WITH YOUR SUPPLIER Remember don’t expect your supplier to give you an advance notice. Remember Chinese culture does not
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Monthly AutoMark International encourage one to make waves. So it’s your job to be proactive in checking with your suppliers if they’re impacted by the new environmental laws. It’d be smart to check if your delivery schedules are guaranteed as well because you don’t want to miss out on Q4 and the holiday shopping season. I recommend also asking how long they expect the closures to last so you can plan ahead.
CONTINGENCY PLAN Don’t put all your eggs in one basket. It makes sense to have backup suppliers to refer to if your primary supplier goes offline. These can be either other suppliers in China or in other countries. Contrary to popular belief, not all products are made in China these days. Other countries such as India, Bangladesh, and SE Asia may not be prone to these increased pollution laws. I recommend also sourcing new suppliers as a long term strategy. In fact, we are in the middle of trade show season right now. I’ve written several articles about how to attend a trade show like a pro. Trade shows are a great way to meet suppliers in person, kick the tires and get your hands on a sample right away so you don’t have to wait for weeks for it to be shipped to you, as well as learn about new product t re nd s and s p ot n ew p rod u ct opportunities.
CHANGE – LEARN TO EMBRACE IT A wise man once said, “The only constant thing in business is CHANGE”. So learn to embrace it. One must adapt quickly or be left behind. If your factory is affected it’s up to you to find a supplier that can deliver the right product, at the right price, at the right time.
SHORT-TERM OUTLOOK – LONGER LEAD TIMES In the short-term, I expect longer lead times during the shakeout since certain factories are being closed indefinitely.
LONG-TERM VIEW – PRICES TO RISE In the long-term, expect prices to rise. Just as California has stricter tailpipe emissions laws which resulted in higher car prices and gas prices, so will China’s stricter environmental laws result in increased costs on suppliers. And these costs will be passed down as price
increases on to you the buyer. It costs more to get clean and expect the price increases to be passed on to you sooner or later. Moreover, raw material prices are rising as well. But on the bright side, the cost increases will affect everyone equally so you will not be at a disadvantage.
A HARD STANCE AGAINST “HEAVY POLLUTERS” If your company is sourcing products from China then there is a major disruption that may be flying under your radar. Since June of 2017, China’s new Ministry of Environment is taking a hard stance against Chinese factories that are “heavy polluters’. In fact, in the most recent round of factory audits, China’s environmental crackdown has shut down tens of thousands of Chinese factories with no end in sight. The effects of decades of massive manufacturing growth have taken its toll on the environment. Now China has some of the most polluted cities in the world. Air purifying equipment and anti-pollution masks sell out often. Groundwater is polluted making safe drinking water a big concern. Now the government is doing something about it. What’s different this time is that a hard stance is being taken in making sure that factories are compliant with environmental laws. Previously when policies were passed there was little to no compliance. Many factories were unaware or unwilling to comply so they continued operating in their old polluting ways. Now some factories are being forced to cease their production immediately and indefinitely. And if they don’t comply their power could be shut off leaving them in the dark.
POWER TRUMPS GUANXI And in this case, power trumps “guanxi”. Decisions are coming directly from the top levels of government so it overrides any relationships factory owners may have at the municipal levels. If they are noncompliant they will definitely face the consequences if they are audited.
LACK OF TRANSPARENCY WITH NO END IN SIGHT One of the issues the factories face is a lack of transparency. Government policy details are quite opaque and many
factories are not aware of the exact policies that they must abide by so they may unknowingly continue to operate in noncompliant ways and risk being shut down. So they face an unpredictable and ongoing risk of being suddenly told to shut down. And there is no clear timeline which means the factories don’t know when or if they can resume production. So all of this makes it a very challenging time if you are sourcing products from China.
WHO’S AFFECTED? According to my research, affected industries include but may not be limited to the following industries. AFFECTED INDUSTRIES • Textiles • Rubber • Leather • Chemicals • Carbon • Metal • Coating • Plastic • Dying, Painting, and Printing processes The environmental audits have been implemented in rollouts that have begun in certain regions mostly centralized in and around Northern China. The later phases will reach other regions. Again it’s difficult to pinpoint exact areas due to lack of transparency. SO FAR WE UNDERSTAND THAT FACTORIES IN THESE REGIONS HAVE BEEN AFFECTED • Shandong • Henan • Hebei • Tianjin • Beijing • Zhejiang • Jilin • Jiangsu • Sichuan • Guandong (Find out more about the reasons behind the Guangdong factories sudden shutdown)
WHY IS THE CLAMPDOWN HAPPENING NOW? In 2013, China passed the “10 Measures for Environmental Protection” which outlined measures to improve China’s environment. This was monumental as China began addressing admitting the environmental problems head-on while in the past China was more focused on d ev el o p i n g i t s e c o n o my wi t h manufacturing while paying a huge expense in the air, water, and ground waste pollution. My sources tell me that the newly appointed Minister of Environment is demanding stricter compliance from the factories thus the extensive auditing and review of these tens of thousands of factories.
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Monthly AutoMark International
Automotive News - Update
Car sales post robust growth in Pakistan Car sales continued to show robust growth, reaching 87,273 units in JulyNovember against 71,877 units in same period in the previous fiscal year. The bus segment remained in the red as overall sales plunged to 276 units from 468. However, assemblers of heavy vehicles covered up their bus sales losses with surging sales of trucks which swelled to 3,574 units from 2,766. Figures released by the Pakistan Automotive Manufacturers Association (Pama) showed a slight fall in Toyota Corolla sales to 21,518 units in the first five months of this fiscal year from 21,628 units. Sales of Honda Civic and City reached 17,157 from 14,155 units. Due to heavy advanced booking orders and combined figures of Civic and City released by Pama, it is hard to ascertain any negative impact on the sales of Honda Civic in view of Honda Atlas’s complain to the government regarding low quality petrol and production closure of Civic Turbo model. Suzuki Swift sales stood at 1,760 units versus 1,789 units in the same period last year. Introduction of the new Cultus boosted sales to 8,002 units from 5,805 units in July-Nov 2016 while WagonR sales almost doubled to 11,383 from 6,183 units.
Amid tough challenge with 660cc used imported cars, Suzuki Mehran excelled with sales of 18,829 as against 14,394 units. Suzuki Bolan, which was losing ground after completion of Punjab Taxi Scheme last fiscal, appeared to have recovered with sales of 8,624 units in July-Nov 2017 as compared to 7,923 units in corresponding period of 2016. In trucks, Hinopak maintained its top position achieving sales of 1,496 units as compared to 1,214 units followed by 621 units by Master and 1,439 units by Isuzu as against 402 and 807 units respecti vely in July- Nov 2016. Ghandhara Nissan had already shut down its production of UD trucks from July 2017. In buses, Hinopak and Isuzu sales fell to 149 and 20 units from 336 and 80 units while Master bus emerged triumphant by registering sales of 107 units as compared to 52 units. In jeeps, Toyota Fortuner reached to new height of 1,408 units from 187 while sales of Honda BR-V, introduced in July 2017, recorded 4,410 units. Suzuki Ravi sales recovered to 9,178 units from 7,459 units. Ravi was also the main vehicle delivered under Punjab Taxi Scheme last fiscal. A total of 2,632 units of Toyota Hilux were sold in July-Nov 2017 against 1,968
unit s i n same period of 2016. In farm machinery, sales of Fiat and Massey Ferguson tractors hit 10,838 and 16,421 units comparing to 6,767 and 10,596 units. Overall sale of two- and three-wheeler assemblers of Pama members surged to 787,347 from 651,983 units in which the share of Honda bikes stood at 454,195 in comparison to 374,558 units. Sale of United Auto Motorcycle, the second biggest bike assemblers, rose to 165,481 units from 135,189 units. Suzuki and Yamaha sold 8,528 and 8,611 units as against 7,170 and 5,178 units in JulyNov 2016. Rai Omar Basharat at Top Line Securities said lower GST on tractor purchase, fertiliser cash subsidy, along with Rs2bn subsidy for farmers on tractor purchase recently announced in FY18 Sindh provincial budget to improve farmers’ purchasing power increased overall tractor sales. He said truck sales would remain strong fueled by the China-Pakistan Economic Corridor, higher road connectivity, low financing rate, change and enforcement of axle load limit per truck on highways by National Highway Authority. Bike and three-wheeler sales are rising due to rising disposable income of the lower middle class.
Toyota cars get pricier by Rs 60,000 Indus Motor Company (IMC) has increased prices of 1,300-1,600cc cars by Rs50,000-60,000 ahead of the new year. Other assemblers are likely to follow suit. The new price of Toyota Corolla XLi, GLi and GLi automatic transmission is Rs1.81 million, Rs1.94m and Rs2.02m compared to Rs1.75m, Rs1.88m and Rs1.96m, respectively. The new price of 1.6 Altis has been jacked up to Rs2.19m from Rs2.14m. The company’s CEO, Ali AsgharJamali, attributed the price hike to seven to eight
per cent rupee devaluation against the dollar which has pushed up prices of imported components. He said that due to the devaluation of the rupee, the cost of locally produced components, which have imported raw material, has also gone up owing to losing strength of the rupee. According to the Pakistan Bureau of Statistics, the import bill of completelyknocked down and semi-knocked down kits for locally assembled cars soared to $329m in July-November from $262m in the same period last year.
According to Pakistan Market Outlook 2018 prepared by Topline Securities, the auto sector is likely to benefit from the change in import duties and procedure of imported vehicles, which could reduce car imports by 20-25pc. A reduction in imported, used vehicles would allow existing players to pass on the cost pressure of devaluation in 201718 before new auto players make an entry in 2019. Sales would be supported by the introduction of new models in 2018-21.
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EXIDE Pakistan Limited introduced Maintenance Free Batteries and Mobile Workshop facilities Recently Exide Pakistan Limited arranged an introduction ceremony at local hotel in Karachi. Many batteries dealers, company employee, higher management of the company were also present at the occasion, while media was invited too. Director Marketing Arshad Gulraiz Butt, Managing Director Mr. Arshad Shahzada and Mr. Hashawani were introduced the Exide maintenance battery and Mobile Workshop truck to facilitate all the customers batteries maintenance requirements at the spot.
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Corporate Business Event Update
Director Memon Motor (Pvt) Ltd., Mr. Usman Saleem Memon receiving "Pakistan Achievement Award International 2017" on 10th December-2017 in London, UK.
Monthly AutoMark International
General Tyre CEO Hussain Kuli gets award
CE and MD of General Tyre Hussain Kuli Khan, has been awarded one of the best performing CEO awards in Pakistan. The award was presented by the chief guest Governor of Sindh Mohammad Zubair during 16th CEO Summit Asia held in Karachi. GTR has also taken the lead amongst its competitors which will enable to show its credibility in the market.
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Monthly AutoMark International
By Ather Ali - Point of View
Hyundai coming to Pakistan, but not so soon!
ecently Hyundai has made a lot headlines, everyone is waiting for them to release their vehicles. Our country from a long time has received car models from the typical three Japanese manufacturers (Toyota, Honda and Suzuki) they have been dominating automotive industry in the country from decades and this just might be changing soon, but not as soon as everyone is expecting it to. It is true many companies have tied up with investors to open up in Pakistan including Kia, Renault Hyundai and few other Chinese, but till now most
R
progress has been seen to be made by Hyundai. However the production is not to start as soon as people think. Hyundai with a ground breaking ceremony opened up a vehicle assembly plant in Faisalabad, the joint of Hyundai Nishat Motors project costs around 230$ Million. The plant will initially produce 7000 vehicles in 2020 and is expected to reach up to production of 30,000 vehicles by 2030. From confirm sources Automark got news that right now Hyundai Nishat Motors does not have any feasible way
to import vehicles in CBU condition due to RD into the Pakistan, locally assemble vehicles may sales are expected to start in or before 2020. With increasing hype to new companies coming into Pakistan, other companies are also getting interested into investing for the new ventures. Millat Tractors Limited has recently shown interest for buying stakes in the Hyundai Nishat Motors joint venture. ‘The board of directors' of the company has approved their request and Millat Tractors Limited can now invest up to 18% in the company.
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Corporate Business Event Update
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Monthly AutoMark International
Opening ceremony of the first company operated outlet of HAWK Batteries by Hi-Tech Engineering Company (Pvt) Limited., in Hyderabad. CEO of the company Asif Memon was present at the inauguration ceremony last month.
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Car / Light Vehicle Price List SUZUKI Ex Factory Price
Model Model
WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR NEW CULTUS VXL NEW CULTUS AGS BOLAN VX EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2
SUZUKI MEGA CARRY SUZUKI CIAZ (A/M) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol)
Rs. 1029,000 Rs. 1069,000 Rs. 650,000 Rs. 720,000 Rs. 773,000 Rs. 1,327,000 Rs. 1,463,000 Rs. 1,250,000 Rs. 1,391,000 Rs. 1,528,000 Rs. 725,000 Rs. 696,000 Rs. 667,000 Rs. 1,499,000 Rs. 1,839,000 Rs. 1,699,000 Rs. 2,142,000 Rs. 2,418,000
Advance Tax
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
25,000 25,000 10,000 10,000 10,000 50,000 50,000
Rs. 10,000 Rs. 10,000 Rs. 10,000
TOYOTA COROLLA Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis A/T CVT-I (1.8 ltr) GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T FORTUNER 2.7L A/T Petrol
HONDA Honda BR-V (i-VTEC) 1.5 Rs. 2,241,000 Honda BR-V (i-VTEC S) 1.5 Rs. 2,341,000 Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 25,41,000/=* Honda Civic 10th Generation 1.5L Turbo Rs. 29,11,000/=* Honda Aspire Manual 1.3L Rs. 1,663,000 HYUNDAI Honda Aspire Manual 1.5L Rs. 1,683,000 Honda City 1.3L Manual Rs. 1,553,000 Honda City 1.3L Automatic Rs. 1,674,000 Honda Civic VTI Manual 1800cc Rs. 2,053,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,285,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,174,000 Honda Civic VTI Prosmatec SR (Oriel) Rs. 2,406,000 * Ex-Factory prices, Advance income tax, freight & insurance will be added as per destination Price will be charge at the time of deliver what-so-ever
DFSK PRINCE PAKISTAN Model K01 997CC, 2300mm, A/C PS K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS C37 1500CC, 11 Seater, AC/PS
Price
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price 1,819,000 1,949,000 1,892,500 2,199,000 2,147,500 2,272,500 2,307,500 2,457,500 5,085,500
Toyota Hilux Pickup 4x2 sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Rs. 2,063,000
Toyota Hilux Pickup 4x4 E Model
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
TOYOTA VIGO DAIHATSU Model Model
Price Price
Rs. 3,324,500
FAW MOTORS Price
Model
Vigo Champ-V MT Rs. 3,598,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW Carrier 1000cc Rs. 799,000 (Flat Bed) Rs. 799,000 Vigo Champ-G AT Rs. 3,798,500 FAW X-PV 1000cc Std Rs. 9,99,000 (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc A/c Rs.1,550,000 FAW V2 1300cc Monthly AutoMark Magazine - International Local Assembled
Rs. 799,000 Rs. Rs. Rs. Rs.
789,000 899,000 949,000 1119,000
Price updated Jan- 2018
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International Automotive Industry - Update
Monthly AutoMark
Honda and Toyota are still backing hydrogen fuel-cell cars Hyundai bolsters electric car lineup to narrow gap with rivals Hyundai Motor Group, lagging behind rivals in the introduction of electric vehicles, is stepping up plans for batterypowered cars as world governments crack down on polluting fossil fuels. Hyundai Motor Co. and affiliate Kia Motors Corp. plan to bring to market as many as 38 green cars in the next eight years, including seven new models in the five years through 2025, Senior Vice President Lee Ki-sang told reporters Friday. Many of them will be EVs. While Hyundai’s Ioniq and Kia’s Soul are the only EVs from their stable at present, the hydrogen-based fuel-cell ix35 and some plug-in hybrids are also on offer. The Korean companies are among manufacturers in a global race to develop vehicles with alternative power trains as countries, led by China, prepare to phase out the use of gasoline and diesel powered cars in their fight against pollution. Volkswagen AG, Daimler AG, General Motors and BMW AG have also announced plans to introduce electric vehicles, vowing to spend billions of dollars in their transition away from internal combustion engines.
Toyota, Honda and Nissan are partnering with eight industrial firms to make a fresh push on hydrogen refuelling stations in Japan. The group wants to build 80 stations within the first four years of the partnership -which is expected to last a decade -- with nine in operation by March 2018. The plan would nearly double the 91 stations currently in the country. Japan's carmakers have made big strides with fuel-cell cars in recent times. Toyota launched the Mirai, the first for the mass-market, in late 2014, while Nissan last year announced its plans to develop fuel-cell technology using plant-based ethanol. The problem, predictably, is cost. A Mirai car costs 6.7 million yen ($59,000), which is nearly double the price of a comparable electric car, while
hydrogen stations can cost as much as 500 million yen ($4.4 million) to build. As such, there are only around 2,200 fuel-cell cars in Japan. The partnership, which also involves Tokyo Gas, oil refiner Idemitsu Kosan, gas maker Iwatani and the Development Bank of Japan, aims to drive down the costs involved in building hydrogen stations, and should also bolster their lobbying power to push for looser regulations around the technology. The government set a target in 2016 to increase the number of fuel-cell cars in Japan to 40,000 by March 2021, so with the industry otherwise stalling, this partnership could be the catalyst needed to bring the technology mainstream.
Suzuki says EV battery supply deal possible with Toyota-Panasonic Suzuki Motor's President, Toshihiro Suzuki, said the automaker will not join efforts by Toyota and Panasonic to develop batteries for electric vehicles, but a supply deal could be possible. Toyota on Wednesday said it is considering making EV batteries with Panasonic to help meet its goal for green cars to comprise half of global sales by 2030. Toshihiro Suzuki, speaking at a product launch in Tokyo on Thursday, told reporters there was "no room" to join the tie- up between Toyota and
Pan aso ni c, b ut t h at a s u p p ly arrangement was possible. Suzuki and Toyota have agreed to trade expertise in parts supplies and research and development, including selling electric vehicles in India. Automakers are competing to launch more EVs to meet tightening regulations on vehicle emissions, and have been announcing partnerships with parts suppliers and other companies to meet the high costs of developing new technologies.
Chinese auto giant to end petrol vehicle sales by 2025 One of China's largest state-owned automakers has said it will phase out sales of all petrol vehicles by 2025, as Beijing considers taking all fuel-burning cars off the country's roads. Beijing Automotive Group Co (BAIC) chairman Xu Heyi said over the weekend the company will phase out sales of conventional cars in Beijing by 2020 and nationwide by 2025, according to the official Xinhua news agency. The decision only applies to cars the company makes itself and will not affect vehicles it makes in partnership with South Korea's Hyundai and Germany's Daimler. The news comes as Beijing debates a
nationwide ban, though a date for entirely eliminating petrol vehicles has yet to be announced. For now, China has put in place a series of carrots and sticks to compel carmakers to produce more fuel-efficient and eventually petrol-free cars as it looks to clean up its smog-choked cities. Authorities will implement a complex quota system in 2019 requiring makers to produce a minimum number of electric cars. Beijing originally wanted to start enforcing the rule in 2018, but delayed its implementation by a year after Germany and some foreign firms raised concerns.
But as the new direction has been made clear, foreign automakers have ramped up plans to make electric vehicles in China. Volkswagen is establishing a joint venture with state-owned JAC Motors to make electric vehicles, aiming to get the first electric car to market by next year. U.S. car giant Ford envisages that 70 percent of all its cars available in China will have electric options by 2025. Last week it announced a US$756 million investment with its Chinese joint venture to produce electric cars. Volvo plans to introduce its first 100 percent electric car in China in 2019.
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Rs. 41,800/= Rs. 43,800/=
Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1
Retail Price Rs. 63,500/= Rs. 67,500/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 45,000/= Rs. 44,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=
125/150 cc Motorcycle No.
Brand & Model Name
Retail Price
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.
Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP Twister 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Unique UD 125cc Unique UD 150cc Crazer Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II
Rs. 105,500/= Rs. 125,000/= Rs. 106,500/= Rs. 159,000/= Rs. 70,000/= Rs. 67,000/= Rs. 108,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 115,900/= Rs. 133,900/= Rs. 129,900/= Rs. 65,000/= Rs. 71,600/=
Sr./ No. 13. 14. 15. 16. 17. 18. 19.
Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Ms Jaguar MS 70 Euro- II Ms Jaguar MS 70
( DREAM)
Zxmco ZX-70 Regular
Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 42,300/=
100cc/110cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Brand &Model Name Honda Pridor United US-100 Euro 2 Road Prince 110cc Unique UD-100 Super Power SP-100 Hi-Speed Classic SR-100 Hi-Speed Alpha SR 100 Super Star SS-100 Crown CR-100 MS JAGUAR MS 100 Zxmco ZX-100-SS
Retail Price Rs. 86,000/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 77,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/=
Suzuki Motorcycle Sr./ Product & Retail Price Model Name No. 1. SD110 Sprinter ECO Rs. 103,400/= 2. GS-150 SE Euro-II Rs. 158,500/= 3. GD 110s Euro-II Rs. 131,000/= 4. GS-150 Rs. 138,500/= 5. GR-150 Rs. 219,000/= Heavy Bikes Sr./ Product & Retail Price No. Model Name 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Zxmco ZX-200cc Rs. 2,45,000/= 5. Bandit GSF650SA Rs. 15,50,000/= 6. Super Power SP 200cc Rs. 2,00,000/= 7. Suzuki GSXR-600cc Rs. 1,950,000/=
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Price updated: Jan-2018
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International Automotive Industry - Update
Monthly AutoMark
Can Honda break through buyer confusion about plug-in hybrids? Dubai begins trial run of hydrogen-powered taxis The hydrogen-powered car, Toyota Mirai, will be on a trial run as the RTA continues to look for alternate fuel options as part of its sustainable transport strategy The hydrogen-powered car, Toyota Mirai, will be on a trial run as the RTA continues to look for alternate fuel options as part of its sustainable transport strategy, the Khaleej Times reported. The futuristic vehicle, that is touted as a zero emission car, emitting only water, can run up to 500 km on a single refuel and is noiseless. Its refuelling can be done in minutes, unlike electric vehicles. The vehicle is powered by hydrogen, which generates electricity inside the engine after being mixed with oxygen supplied through the grill intake at the front of the vehicle. It is characterised by high-level driving convenience and uses Toyota Fuel Cell System that combines fuel cell as well as hybrid technology.
Toyota 'Prius' Name Cannot Be Used In India — Here's Why Japanese auto giant Toyota Motor Corp lost a legal battle to spare parts manufacturer, called M/S Prius Auto Industries & Ors, for trademark infringement. Toyota will not be able to sell its hybrid car in India with the moniker 'Prius'. The company launched Prius back in 1997; however, it registered the name only in 2010 in India. The Haryana based Prius Auto though registered the name in 2001. The Supreme Court of India has ruled that trademark rights are territorial, not global, thereby dismissing a trademark case brought by Toyota.
With the launch of the 2018 Honda Clarity Plug-In Hybrid sedan, the Chevrolet Volt now has its first serious competition among long-range plug-in hybrids. About 25,000 second-generation Volts were sold last year, and this year's number will be about 20,000. Honda says it may sell about the same number of plug-in Claritys. On a media drive last week to give automotive journalists a look at the Clarity Plug-In just as it hit dealers, Honda addressed the question of marketing. The company showed the 30-second advertisement at the top of this article to the assembled press. What's notable is Honda's approach to explaining a car that's both electric and gasoline-powered. As we've written before, the huge challenge for plug-in hybrids is that mass-market shoppers simply don't understand what they are, how they work, or why they might hav e advantages. By now, shoppers understand hybrids: You put gasoline in them like a regular car, but somehow the magic gerbils under the hood use less gasoline. And they understand electric cars: Like
your cellphone, it's a device that works on a battery and you have to recharge it regularly. Oh, and Tesla. What they don't necessarily understand is a car that's both at once. Meanwhile, shoppers continue to find Chevy and Toyota dealers who've left their Volts and Prius Primes uncharged, so they don't run in full electric mode, and salespeople who have no idea how a plug-in hybrid works. The Honda's "Beyond the Battery" ad for the Clarity Plug-In presents the car as an electric car with a backup: "The end of your battery charge isn't the end of the world: It runs on electric, and has gas if you need it." And that's about the substance of the ad, which has no voiceover for the first 10 of its 30 seconds—just footage of a happy family in their sedan running through gorgeous green scenery. We note in particularly that the only range rating Honda discusses is the plug-in Clarity's combinedelectric and gasoline rating of 340 miles. That's probably a good thing; it avoids the question, "Wait, so it's an electric car with only 47 miles of range? Why would I ever want that?"
Chinese truck maker rides electric boom FAW Jiefang Automotive Co. Ltd., an established Chinese truck manufacturer, has opened its first production base for electric trucks. The base in the eastern coastal city of Qingdao is expected to produce 50,000 full electric trucks each year, according to the company, a subsidiary of China's leading auto maker FAW Group. The company has developed light, medium and heavy new energy trucks, said Hu Hanjie, general manager of FAW Jiefang. New energy vehicles, including allelectric and plug-in hybrid vehicles, have seen explosive growth in China. Statistics from the Ministry of Industry and Information Technology showed that 517,000 new energy vehicles, including full electric vehicles and plug-
in hybrids, were manufactured and 490,000 were sold between January and October, both up more than 45 percent year on year. Since the first Jiefang truck was manufactured in 1956, the brand has sold more than 6.6 million trucks and exported to 80 countries and regions. In 2016, the company sold 202,000 trucks, 185,000 of which were medium and heavy vehicles, holding the biggest market share in China at 19.25 percent. Its output this year has exceeded 300,000, the company announced Thursday. In addition to the electric push, Jiefang will also focus on research for selfdriving trucks in coming years.
www.automark.pk | January-2018 | Page 45
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